suezeeq, you need to change your "display settings on the t.v.". Just press the "display button" on your sony remote until it changes to one that makes the image fit the screen correctly.
Thanks Moxyman - I did try that and there are a LOT of choices - there's the wide screen, full screen, normal, then another widescreen that says it wont distort the picture. BTW - this isn't like this when we are watching tv so I don't know what is going on.
I'm going to grab the HD cable tomorrow and see how that goes and I also loaded WiiFlow so maybe that will look a little better-gotta check that out. Will keep you posted though and thanks again!